Daily News

General Employment net loss rises, CFO cites changes

General Employment Enterprises Inc. (NYSE MKT: JOB) reported a net loss of $1.6 million in its fiscal year ended Sept. 30, 2013, compared with net loss of $900,000 in the previous year.

However, full-year net revenue rose by approximately 4 percent to approximately $46.5 million.

Shares in General Employment Enterprises fell by 0.83 percent to 19 cents to in early afternoon trading.

CFO Andrew Norstrud said the company reached a majority of its strategic goals in 2013.

“In addition to the more than $1.2 million of one-time expenses incurred in 2013, we have eliminated the unprofitable agriculture business, closed an unprofitable office in California, eliminated more than $700,000 of unnecessary payroll as of Dec. 31, 2013 and expect to eliminate additional annual expenses of more than $300,000 before March 31, 2014,” Norstrud said. “General Employment Enterprises Inc. has been in business for more than 120 years. With these changes in place, management expects to re-focus the concentration to the company’s long term initiatives versus correcting the mistakes of the recent past.”

The company also announced Edward Hunter resigned as a member of the board of directors for personal reasons. In November, Chairman and CEO Michael Schroering stepped down to pursue his other business interests.

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